New Challenges in Retail Human Resource Management

Such terms as globalization, process management, and value-based management dominate the current discussion of management in retail companies. There has been an increasing realization that people are one of a company’s key assets. Retail means working and serving customers in a direct, personal way. This calls for special actions from retail companies to fulfill the demands of an increasing number of well-informed and sophisticated consumers. In view of all the changes in both national and international contexts, it is absolutely essential to get the right people if a business is to be successful and sustainable. Retailing is a major labor-intensive industry sector. Therefore, companies are continually challenged to re-organize and adapt their structures to become more efficient. The necessity for part-time workers, because of long store opening hours and peaks in the trading day/week, requires a flexible framework to optimize labor processes. Emotionally, the workforce needs orientation and vision in changing times. Human resource management (HRM) has to provide a “coach,” not only to organize, but also to support employees and management mentally and professionally in fulfilling their tasks in terms of future company goals. People are the driving force behind all transactions that occur in retailing outlets. In the future world of retailing, there will be an increasing need to adapt and change towards a more formative and proactive style of HRM.